How eBay Works With Dropshipping

Many people want to have an eBay business. Wouldn’t it be nice to make a full time living from home just selling stuff on eBay? The good news is: It can be done - even if you don’t have products to sell.

eBay provides many people who want to quit their corporate nine-to-five jobs with a way to make a good living, without having to put up a lot of start up capital. This is made possible with the help of drop shippers.

Drop shippers send merchandise to the customers of business owners. If you have an eBay business, you are a business owner. This will allow you to offer a wide variety of stock in your eBay store, without having the need to warehouse all of those products!

The way it normally works in eBay is that you set up your auctions and when the product is sold the customer address is automatically sent to your dropshipping company so that they can ship the products to the desired address. You don’t deal in any way with shipping or handling.

When the product arrives at your customer’s home, they will have no idea that your company didn’t send it. The drop shipper will package, label, and ship the products that you sell, allowing you more time to set up even more auctions, for greater profits.

There are many dropshipping comapnies available and prices differ substantially. Usually when you are starting out your will have to pay your dropshipping comapny up front. Later you may negotiate better terms and conditions. However, this depends on the volume over a period of time.

You need to fill orders in a timely manner, so you should pay for the items with a credit card for speedy service. Eventually, you will be able to have the drop shipper fill your orders, and then bill you for them later.

When setting up your auction you will have to make sure that your reserve price is higher than the price you have to pay to the dropshipper.

Depending on the item you are selling, a markup of about 10% should be about right, but you should do some research to see if the item is selling for a lower price in another eBay auction, or through other online sources.

By starting an eBay business using the drop shipping method, there is essentially no financial risk involved. The product will be sold before you pay the drop shipper for the item. This is one of the few businesses where you can actually turn a profit before you have expenditures!